NCLAT allows revised bids for Bhushan Power

The National Company Law Appellate Tribunal (NCLAT) has allowed JSW Steel, Tata Steel and Liberty House to submit revised bids for Bhushan Power & Steel by Monday.

On Tuesday, the committee of creditors (CoC) had reaffirmed Tata Steel as the H1 bidder and JSW Steel as the H2 bidder according to an NCLAT observation that asked them to consider only the first batch of resolution plans. Electronic voting on the resolution plans was supposed to start after 48 hours, but the meeting now stands null and void.

The CoC had invited revised bids till Tuesday 9 am, a decision taken at a meeting on July 27, after JSW Steel submitted a revised offer the previous night.

Tata Steel had moved the NCLAT against the revised offer, on grounds that it was against earlier orders by the tribunal and the Insolvency and Bankruptcy Code, and that the NCLAT observation was in response to it.

On Wednesday, the tribunal also said that the operational creditors' concerns of getting a better share would have to be looked into.

So far, the only revised offer with the CoC is that of JSW Steel’s. JSW Steel has submitted three bids until now, sources said. The first bid, which included an upfront payment of ~110 billion, was submitted in February. The second, of ~180 billion, was submitted on July 26 and a third, believed to be close to ~190 billion, was submitted on Tuesday. Sources indicated that JSW Steel’s last bid was likely to have trumped Liberty House’s bid. If Tata Steel revises their offer, a fourth bid from JSW Steel is likely. Tata Steel’s offer, submitted in February, is ~170 billion and Liberty House’s is ~186 billion.

Bhushan Power owes lenders around ~470 billion and has a 3 million tonne steelmaking capacity.

On Tuesday night, Liberty House had shot off a letter to the resolution professional and the CoC, expressing its discontent with the scoring by the creditors on Tuesday. It would not have the opportunity of revising its offer.